Accounting, Audit And Tax Services
• Tax Compliance Assistance
• Agreed upon procedure/engagements
• Assurance Services
• Compliance Services
• Annual audit of financial statements (AAFS)
• Internal control compliance
• Cost accounting and inventory control
• Budgeting and forecasting
• Accounting software set-up
• Tax services (monthly BIR compliance)
• General accounting (bookkeeping assistance)
• Payroll services
• SSS, PHIC & HDMF services
• Profit and loss analysis
• Financial Statements Preparation
• Income Tax Return (ITR) preparation
Corporate Secretarial Services
• SEC Registration
• Settlement of SEC cases/assesments
• Revival and closure of Corporation
• SEC compliance (AFS, GIS, and SS/COEP)
• Increase/Decrease in Authorized Capital
• Confirmation of Valuation
• Transfer of shares of stocks
Consultancy And Other Professional Services
• Business Registration
• Settlement of BIR open cases/assessments
• Tax Treaty
• Estate, Donor’s and Excise tax
One Person Corporation vs. Single Proprietorship
Under the Revised Corporation Code, setting up a business as a One Person Corporation (OPC) is already permitted. One of the reason of adopting OPC is because of the growing number of micro, small and medium enterprises (MSMEs). These MSMEs, mostly sole proprietorships, find themselves in extreme hardship because of the unlimited liability. With the OPC, these MSMEs will be treated separately from the person owning it thereby enjoying the limited liability of a corporation. In a One Person Corporation (OPC), the five to fifteen (5 to 15) incorporator requirement in a normal corporation has been dispensed with. There is another advantage in terms of decision making, as a one-man show, formalities expected of a board of directors has been eliminated, subject to disclosing the name of the corporation along with the suffix “OPC.”
Is it favorable being organized as an OPC compared to a single proprietor?
• Tax - OPC has a better right to the standard optional deduction of 40 percent for income tax purposes.
• Succession - if the single proprietor dies, all liabilities and assets of his business are passed on to his heirs but not the business license. While if the business is registered as an OPC, the corporation’s life is perpetual under the new corporation code. At the early registration the OPC owner is required to designate a nominee and alternate nominee who can take over the business in the event of his death or incapacity.
• Liability - Single proprietor is directly liable while OPC has a separate juridical personality from its individual owner.
Moreover, a foreigner may register as an OPC subject to the applicable constitutional and statutory restrictions; subject to the 11th Foreign Negative List (FNL).
SEC Chairperson Emilio Aquino said in the statement, “ An OPC offers the agility and complete dominion of a sole proprietorship and the limited liability of a corporation. We encourage everyone to take advantage of this provision to pursue their entrepreneurial aspirations.”
Business Registration in the Philippines
A businessman or aspirant entrepreneur, while in eureka moment, figures business the first thing. In starting up a business, what are the requirements?
Business registration in the Philippines has become easier and convenient with the conception of online government registration services.
There are three forms of Business Organizations:
• Single Proprietorship
Owned and managed by one natural person, its name registration is with Department of Trade and Industry (DTI).
• At least three (3) proposed business names;
• Business name applicant must be above 18 years old and a Filipino citizen;
• Must have at least 2 valid (government issued) identification cards
Partnership and Corporation
Partnership is a form of business for profit wherein two or more persons contribute to a common fund in money, property or service. A corporation on the other hand is formed in accordance with the Revised Corporation Code (Republic Act 11232). In this type of business organization, a single individual could be an OPC, but there is a maximum number of 15 incorporators/directors. Registration for both is with the Securities and Exchange Commission (SEC).
• Cover Sheet
• Articles of Partnership/Articles of Incorporation
• By-Laws for Corporation
Depending on the type of industry, ownership of the corporation must observe the limitations set forth in the 11th Foreign Investment Negative List, some are listed below:
• Domestic Corporation with 0% Foreign Equity (100% Filipino-owned)
• Domestic Corporation with 0.01% to 40% Foreign Equity
• Foreign-Owned Domestic Corporation with 40.01% to 100% Foreign Equity
• Foreign-Owned Corporation with 0.01% to 100% Foreign Equity
• One Person Corporation (OPC)
• Financing Corporation
• Lending Corporation
Guide to Philippine Tax
1. Income Tax
2. Estate Tax
3. Donors Tax
4. Value Added Tax (VAT)
5. Other Percentage Tax
6. Compensation Withholding Tax (CWT)
7. Expanded Withholding Tax (EWT)
8. Final Withholding Tax (FWT)
9. Documentary Stamp Tax (DST)
Income tax in the Philippines comprises yearly EARNINGS which include compensation for services in whatever form paid, including, but not limited to fees, salaries, wages, commissions, and similar items and gross income derived from the conduct of trade or business or the exercise of a profession.
Estate tax in the Philippines is a tax imposed on the privilege of transmitting property upon the death of the owner. Donations which are to take effect upon the death of the donor and therefore partake of the nature of testamentary dispositions are subject to estate tax.
Donor’s tax in the Philippines is imposed on the transfer by any person, resident or non-resident, of property by gift. The donations subject to donor’s tax are GRATUITOUS TRANSFERS between PARTIES to take effect during the lifetime of the donor.
Value Added Tax (VAT)
VAT in the Philippines applies, in general, to all persons who sell, barter, exchange or lease goods or properties, or render services in the course of trade or business and those who import goods, whether for business or otherwise and whose annual sales or gross receipts exceed PhP 3,000,000, OR THOSE WHICH ARE VAT REGISTERED, REGARDLESS OF TOTAL SALES OR COLLECTION.
Percentage tax on the gross quarterly sales or receipts of persons who are otherwise subject to the VAT but whose annual sales or gross receipts do not exceed PhP 3,000,000 and are not VAT-registered.
Compensation Withholding Tax (CWT)
CWT is the tax withheld from income payments to individuals arising from an employer-employee relationship, receiving purely compensation income – Compensation is the remuneration for services performed by an employee for his employer under an employer-employee relationship.
Expanded Withholding Tax (EWT)
EWT is a kind of withholding tax which is prescribed on certain income payments and is creditable against the income tax due of the payee for the taxable quarter/year in which the particular income was earned.
Final Withholding Tax (FWT)
FWT is a tax withheld which prescribed only for certain payors and is not creditable against the income tax due of the payee for the taxable year. Income to which the said Final Withholding Tax pertain is no longer subject to ordinary income tax.
Documentary Stamp Tax (DST)
The DST in the Philippines is an excise tax levied on documents, instruments, loan agreements and papers evidencing the acceptance, assignment, sale or transfer of an obligation, rights, or property incident thereto. The amount of tax is either fixed or based on the par or face value of the document or instrument.
CRCC collects data from you.
When registering on our site, as appropriate, you may be asked to enter your name, email address, company address, phone number or other details to help you with your experience. CRCC may also collect non-personally identifiable data such as your device type, IP address, time zone, screen size, plugin details, language preference, and so on. Note that CRCC does NOT store your credit card details.
CRCC collects these data for limited purposes.
We may use the information we collect from you in the following ways:
CRCC collects data via various methods.
CRCC may collect the aforementioned information from you when you:
CRCC stores your data in a secured server in the Philippines.
CRCC website is created by Cid Systems, Inc. An IT software company located at U1410 Cityland Herrera Tower, 98 V. A. Rufino St. Cor. Valero St. Salcedo Village, Makati City, Philippines. Hence, Cid Systems, Inc. is our Personal Information Controller (PIC) and all data collected from you are transferred to its servers via the Internet. Using the Service means you agree that your personal information shared with CRCC is transferred to the mentioned servers. The servers are currently located in the United States of America (USA), specifically at the Telecom Center LA--a multi-tenant carrier neutral telecom facility in Los Angeles business district. Should there be any change in the location of the servers, we will update this Policy and let you know via email. We also advise you to review this Policy regularly to stay updated. Furthermore, Our website is scanned on a regular basis for security holes and known vulnerabilities in order to make your visit to our site as safe as possible. We use regular Malware Scanning.
CRCC does not disclose your data to third parties without your consent.
Note, however, that although your information is stored on our servers, it will remain within your PIC’s control at all times. The server host’s role is merely to host and store CRCC data. It doesn’t have access to your personal information. In addition, we have taken steps to make sure your personal information is inaccessible to other parties. The servers are secured with SSL Certificates from the leading certificate authority, RapidSSL. Furthermore, all data transferred between You and the Service is encrypted. To know more about our data protection policy, see our Security Policy below. A third party may only access your personal information provided that you have explicit consent. However, this policy may be overridden in legitimate grounds such as when your personal data is needed for a subpoena or when your PIC has a legal obligation to disclose such information. If possible and appropriate, we will notify you via the email address you provided if the law requires us to disclose your personal information.
CRCC keeps your information for only a limited time.
CRCC keeps your information for as long as we need to provide you with the Service. Once you Opt to not avail or terminate your account with us, your records shall also be deleted from our servers. However, we may extend keeping Your personal information for purposes required by the law.
CRCC will let you know if your information has been compromised.
Although your information is stored on secure servers, safe from unauthorized access, modification, or disclosure, the Internet in itself is not a secure environment. Thus, we cannot guarantee that Your information is secure at all time. You should understand the risk of transmitting your personal information over the Internet and should only enter your such information to the Service in a secure environment. Nonetheless, should there be a security breach where Your personal information is lost, stolen, accessed, used, disclosed, copied, modified, or disposed of by any unauthorized persons or in any unauthorized manner, we will notify you at the first reasonable opportunity. For this reason, we advise you to provide us with the accurate and updated data only.
CRCC allows you to rectify your data.
You may have your data corrected any time to ensure your personal data are accurate and up- to-date. To request for data rectification, send an email to email@example.com and we will act on it immediately unless, otherwise, the request is unreasonable. We will then inform you once your personal data has been rectified.
CRCC allows you to download your data.
You may have a portable copy of your data by clicking the download button on the site.
CRCC allows you to file a complaint.
If You wish to complain about how we have handled Your personal information, please provide us with full details of Your complaint and any supporting documentation by e-mail at firstname.lastname@example.org. CRCC team will endeavor to:
SECURITY POLICY Our hosting and service delivery infrastructure ensures the highest level of security. This is supported by a world-class network, data and physical security environment.
Security is an ongoing process, not a singular event – we continuously evaluate and reinforce our security policy and practices. Here are just some of the security precautions we take.
Our servers have SSL Certificates signed by global leaders in certificates, RapidSSL, so all data transferred between the users and the service is encrypted. The encryption is the same as that used for Internet banking.
Firewalls & network security
All of our servers are hooked up to APC remote reboot ports in the event that they lockup for any reason. All of the servers are protected by state-of-the-art hardware firewalls, where we have Cisco PIX for the network, as well as additional software firewalls for the servers. Everything is logged and routinely scanned by our system administrators.